Distributed and combined energy

generation in Greater London (GL) –

past experiences and future

prospects

Niels Schulz, Research Fellow

Urban Energy Systems Project Team Leader

Prepared for the joined symposium of University of Tokyo

and Imperial College London,

January 31st to Feb 1st in London

Outline of the presentation• Introduction to Greater London (GL), definition of

distributed and combined generation,

• Different scales and fields of policy influencing the uptake of distributed and combined generation in GL (top down)

• Comparison of data on distributed and combined • Comparison of data on distributed and combined generation (global to local), historic trends of energy demand in GL

• Outlook, anticipated changes in energy demand and CHP potential

• Proposed policy measures

Greater London

= City of London + 32 Boroughs

1,579 km2, 7.5 Million residents in 2006,

5 Planning regions, energy demand like Portugal

demographic dynamics

80%

85%

90%

95%

100%

105%

110%

115%

120%

125%

130%

2001 2003 2006 2011 2016 2021 2026

total households

average household size

total resident population

8.5 million

3.9 million

2.1

Scales of policy affecting distributed

and combined generation in GL• International level

• EU level

• UK national level

• Greater London level

• Borough level• Borough level

Involved policy fields include:

• Planning and building regulations

• Energy policy

• Environmental policy

• Social policy

Distributed and combined

generationAims at decentralised (often small scale), embedded generation close to

centres of demand (reducing transmissions & distribution costs & losses)

Includes cogeneration of various energy quality (integration of electricity generation, heating and cooling)

Is not necessarily based on renewable fuels

Technologies include:– Combined heat power (CHP)

• Fuel cells

• Stirling engines • Stirling engines

• Reciprocating engines

• Micro combined heat and power (MicroCHP)

– Biogas systems– Energy from waste (e.g. pyrolysis)

– Microturbines – Photovoltaic Systems – Small Wind power systems – Air or ground based heat pumps– Geothermal– other

International and EU Level

• EU signed UNFCCC, the Kyoto protocol in 1998, ratified it in 2002, entry into force in 2005

• As Annex1 signatory it committed itself to reductions of -8% by 2008-2012

• EU: observed reductions 1990-2005 -1.5% excluding LUCLUF, -1.5 including LUCLUFLUCLUF, -1.5 including LUCLUF

• UK signed UNFCCC, the Kyoto protocol in 1998, ratified it in 2002, entry info force 2005

• As Annex 1 country it committed itself to reductions of -12%

• Observed reductions 1990-2005 were - 15%, (LUCLUF contributed less 1%)

EU targets beyond Kyoto / 2012:

• EU targets: at least -20% GHG by 2020, up to -30% if US, China and India also commit

• GHG at least -50% by 2050• GHG at least -50% by 2050

• 20% renewable by 2020 (up from 6.5%)

• 10% transport bio-fuels by 2020

Relevant EU directives

Since 40-50 % of gross energy consumption in the EU are related to building construction, operation maintenance an Energy Performance Building Directive (EPBD) was issued in 2002 ( adapted and implemented by member states by jan2006)

– Gives general framework for calculation of energy performance and certification including: heating, cooling, ventilation, hot water supply, lighting, all expressed in primary energy

– But excludes real lifecycle emissions for embodied energy, maintenance, end of life

In 1997 the EU commission outlined a co-generation directive aiming to double electricity In 1997 the EU commission outlined a co-generation directive aiming to double electricity from cogeneration to 18% by 2010 (would save 65 Mt CO2)

– Led to directive for promotion of cogen in 2004– Commission decision in 2006 on harmonised efficiency reference values

Further relevant EU regulations include:– End-use Efficiency & Energy Services– Eco-design of Energy-Using Products– Energy Labelling of Domestic Appliances

UK energy policy

• Until early 1980s: nationalised utility companies in UK (British coal, British gas etc.)

• During late 1980s and early 1990s: market liberalisation and privatisation of nationalised energy markets:

• Regulation now through OFGEM (office of gas and electricity markets) – UK was leading this de-regulation trend in Europe

• Splitting of energy production companies and network operators • Splitting of energy production companies and network operators (unbundling) – giving customers choice of provider

• UK energy policy works now largely indirect through influencing market operation (taxation, subsidy, incentives, planning controls, market entry restrictions, underwriting liabilities, grants, research funding)

• Recent presentation of new plans for expansion of nuclear power

UK energy policy beyond Kyoto (2012)

• UK energy white (May 2007) paper outlines goal of more than 60% GHG reductions by 2050

• UK- wide installed CHP capacity: – about 6.3 GW = 7.8% of total capacity– about 6.3 GW = 7.8% of total capacity

– Industrial CHP: 2.7 GW

• About 5.4% of e-generation is currently from CHP

• Target for CHP: 10 GW capacity at national scale by 2010 – unclear if it will be met.

Glo

bal c

om

paris

on o

f CH

P

20

30

40

50

60

[% of electricity as CHP]

Sourc

e: IE

A [to

tal =

80%

of g

lobal e

lectric

ity g

enera

ted]

0

10

TOTAL

United States

United Kingdom

Turkey

Sweden

Spain

Russia

Poland

Netherlands

Mexico

Korea

Japan

Italy

Germany

France

Finland

EU25

Denmark

China

Canada

Brazil

Australia

[% of electricity as CHP]

% o

f insta

lled

ca

pa

city

% o

f actu

al g

ene

ratio

n

District heating in Europe

London: Electricity consumption

Source: London Energy and Co2 Emission Inventory 2003

Greater

London

• Institutional framing changed historically:

– Greater London Council 1965 - 1986, then:

abolition & devolution of GLC government.

– Since 2000 Greater London Authority with – Since 2000 Greater London Authority with

directly elected Mayor

• Current Mayor: high priority on energy savings and efficiency

London CO2 emissions 2006

London Energy and CO2 emissions inventory; Defra

London final energy consumption

by energy carrier

Source: London Energy Strategy 2004

Per capita energy use in London and EU

Energy use in European cities

40

60

80

100

120

[GJ / c

ap

ita*y

r]

-

20

40

Inner

London

Outer

London

Greater

London

Greater

London

- East

Berlin

West

Berlin

total

Berlin

total

Berlin

- Paris

(Ile de

France)

[GJ / c

ap

ita*y

r]

Domestic Commerce Industry Transport Total

London: energy consumption by

sector

Source: London Energy Strategy 2004

Household energy end-useWet appliances

2%Lighting

3%

Miscellaneous

2%Cooking

3%

Consumer

electronics

3%

Cold

appliances

4%

Space heating

61%Hot water

22%

DTI Energy consumption tables 2004

London: CO2 emissions by sector

Source: London Energy Strategy 2004

UK electricity fuel mix

1990 1999

Source: London Energy Strategy 2004

GL: supply side

• In 1999 about 40 % of London’s electricity consumption was generated at 17 locations within Greater London. These include 1GW at Barking and 350MW at Enfield, as well as the 180MW plant at Lots Road

• Approximately 140 CHP schemes operating in Greater London, with a combined primary energy consumption of about 7TWh from gas and gasoil. Total electrical output in 1999 was 2TWh, roughly equivalent to 6% of electricity consumptionequivalent to 6% of electricity consumption

• London’s electrical CHP capacity is about 175MW, which is four per cent of the UK total. This is disproportionately low because the majority of UK CHP capacity is on industrial sites, while London is no longer a major industrial centre. However, 27 per cent of the UK’s non-industrial CHP plants are in London.

CHP in London by sector

GL: p

opula

tion d

ensity

4,0

00

6,0

00

8,0

00

10,0

00

12,0

00

14,0

00

16,0

00

[people / km2]

0

2,0

00

Greater London

Inner London

Inner London - WestCamden

City of LondonHammersmith and FulhamKensington and Chelsea

WandsworthWestminster

Inner London - EastHackneyHaringeyIslingtonLambeth

LewishamNewham

SouthwarkTower Hamlets

Outer London

Outer London - East and North EastBarking and Dagenham

BexleyEnfield

GreenwichHavering

RedbridgeWaltham Forest

Outer London - SouthBromleyCroydon

Kingston upon ThamesMertonSutton

Outer London - West and North WestBarnetBrentEaling

HarrowHillingdon

HounslowRichmond upon Thames

GL: te

chnic

al e

nerg

y u

se b

y s

ecto

r

10

%

20

%

30

%

40

%

50

%

60

%

70

%

80

%

90

%

10

0%

0%

Greater London

Inner London

Inner London - West

Camden

City of London

Hammersmith and Fulham

Kensington and Chelsea

Wandsworth

Westminster

Inner London - East

Hackney

Haringey

Islington

Lambeth

Lewisham

Newham

Southwark

Tower Hamlets

Outer London

Outer London - East and North East

Barking and Dagenham

Bexley

Enfield

Greenwich

Havering

Redbridge

Waltham Forest

Outer London - South

Bromley

Croydon

Kingston upon Thames

Merton

Sutton

Outer London - West and North West

Barnet

Brent

Ealing

Harrow

Hillingdon

Hounslow

Richmond upon Thames

do

me

stic

co

mm

erc

ial, in

du

stria

ltra

nsp

ort

GL

: en

erg

y d

issip

atio

n b

y a

rea

0

20

0

40

0

60

0

80

0

1,0

00

1,2

00

1,4

00

1,6

00

1,8

00

2,0

00

Greater London

Inner London

Inner London - West

Camden

City of LondonHammersmith and Fulham

Kensington and Chelsea

Wandsworth

Westminster

Inner London - East

HackneyHaringey

Islington

Lambeth

Lewisham

Newham

Southwark

Tower Hamlets

Outer London

Outer London - East and North East

Barking and Dagenham

BexleyEnfield

Greenwich

Havering

Redbridge

Waltham Forest

Outer London - SouthBromley

Croydon

Kingston upon Thames

Merton

Sutton

Outer London - West and North WestBarnet

Brent

Ealing

Harrow

Hillingdon

Hounslow

Richmond upon Thames

[MJ/m2]

6,6

06

Greater London

Inner London

Inner London - West

Camden

City of LondonHammersmith and Fulham

Kensington and Chelsea

Wandsworth

Westminster

Inner London - East

HackneyHaringey

Islington

Lambeth

Lewisham

Newham

Southwark

Tower Hamlets

Outer London

Outer London - East and North East

Barking and Dagenham

BexleyEnfield

Greenwich

Havering

Redbridge

Waltham Forest

Outer London - SouthBromley

Croydon

Kingston upon Thames

Merton

Sutton

Outer London - West and North WestBarnet

Brent

Ealing

Harrow

Hillingdon

Hounslow

Richmond upon Thames

MJ/m

2 d

om

estic

Mj/m

2 c

om

me

rcia

l, ind

ustria

lM

J/m2

tran

sp

ort

Energ

y d

issip

atio

n p

er h

ousehold

100

150

200

250

300

350

400

[GJ/hh]

4,4

36 G

J/h

h

0

50

Greater London

Inner London

Inner London - West

Camden

City of London

Hammersmith and Fulham

Kensington and Chelsea

Wandsworth

Westminster

Inner London - East

Hackney

Haringey

Islington

Lambeth

Lewisham

Newham

Southwark

Tower Hamlets

Outer London

Outer London - East and North East

Barking and Dagenham

Bexley

Enfield

Greenwich

Havering

Redbridge

Waltham Forest

Outer London - South

Bromley

Croydon

Kingston upon Thames

Merton

Sutton

Outer London - West and North West

Barnet

Brent

Ealing

Harrow

Hillingdon

Hounslow

Richmond upon Thames

GJ/h

h d

om

estic

GJ/h

h s

ervic

e/In

dustria

lG

J/hh tra

nsport

Energy policy at the level of GL

• Key publications: GLA Energy Strategy, London Plan (+additions), Climate Change Action Plan

• Several new institutions were founded, often as public-private partnership (London Energy Partnership, London Climate Change Agency, London ESCO with EDF)London ESCO with EDF)

• Best practice examples were celebrated, energy action areas were designated in urban redevelopment areas (e.g. neighbourhood hosting the London Olympics 2012)

Climate change action plan

Studies on potential of distributed generation

•Current capacity of CHP generation in London: 175 MWe

•Targets are for 350 MWe by 2010

•Together with other measures towards distributed generation carbon savings up to 34% by 2025 are projected

Policy initiatives at the borough level

• One interesting bottom up initiative for increased

energy efficiency is the “Merton rule”

(requesting at least 10% carbon reduction

through on site generation)

• It was taken up by the GLA and even increased

to 20% level

• Although it affects only new-builds or mayor

redevelopments and does not look at absolute

targets of maximum emissions per area

Proposed changes to the supply exemption order

Composition of electricity prices

Price composition under

supply exemptionCurrent electricity

price composition

To summarise and conclude:

• The energy infrastructure of London is influenced by policy decisions at a range of scales

• It is difficult to analyse and predict how those policies interact and multiplypolicies interact and multiply

• CHP is a particularly promising and cost effective technology which is barely utilised in the UK and GL

• Given the devolved governance structure of the UK planning system it is not certain if the potential of CHP will be used to it’s full extend